McCormick to buy French’s Mus­tard, Frank’s Red Hot in $4.2 bil­lion deal

The Hamilton Spectator - - BUSINESS - NEW YORK TIMES

McCormick & Co. will ac­count for more space in U.S. cup­boards af­ter agree­ing to buy French’s mus­tard and Frank’s Red Hot sauce in a deal worth $4.2 bil­lion.

The spice maker, which is based in Sparks, Md., near Bal­ti­more, will ac­quire the food busi­ness of Reckitt Benckiser, the Bri­tish con­sumer-goods com­pany, and in­tends to fi­nance the deal through a com­bi­na­tion of debt and eq­uity. The busi­ness in­cludes the French’s, Frank’s Red Hot and Cat­tle­men’s brands.

The sale, an­nounced late Tues­day, came af­ter Reckitt Benckiser an­nounced a strate­gic re­view in April of its food busi­ness.

Reckitt Benckiser has moved away from the food busi­ness in re­cent years and in­creas­ingly fo­cused on con­sumer health prod­ucts, in­clud­ing Durex con­doms, Nuro­fen pain reliev­ers and Scholl foot care.

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